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CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent

Section 14 defines free consent. Which of the following correctly describes how mistake is treated there?

Section 14 treats mistake as affecting consent only subject to the provisions of Sections 20, 21 and 22. So whether mistake matters depends on those sections, such as a bilateral mistake of fact making an agreement void, rather than making every mistake a ground for voidability.

  1. AMistake makes a contract voidable under Section 19 in every case
  2. BConsent caused by mistake is free, subject to the provisions of Sections 20, 21 and 22Correct
  3. CMistake is not a factor affecting free consent at all
  4. DMistake is defined in Section 17 along with fraud

Explanation

Section 14 lists mistake as the fifth item, 'subject to the provisions of sections 20, 21 and 22'. Thus the effect of mistake depends on those sections, not on Section 19, which covers coercion, fraud and misrepresentation. Section 17 defines fraud only.

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